Utilities
Process Review, Opportunity Assessment and Training
Power Generation and Retail
Situation
- £1.0bn of external expenditure
- Sourcing methodology implemented for 2-3 years but not considered effective
- Knowledge levels good but application perceived to be poor
- Need to reduce cost base and improve management of complex commodity categories
Approach
- Undertook a structured assessment of the total expenditure using its spend analysis methodology
- Undertook a review of how key categories were managed
- Reviewed supporting management practices, coaching and mentoring frameworks and assessed team skills
Benefits
- Identified benefits of around £25m across 12 key commodities totalling £300m
- Developed outline source plans using cross-functional business engagement
- Upgraded the sourcing methodology developing an on-line intranet based tool
- Delivered training in the tool and strategic processes to 70 people
- Implemented coaching and mentoring frameworks supported by SMEs
Category Management Diagnostic and Category Project Support
Energy Extraction, Generation and Distribution
Situation
- £2.0bn of external expenditure managed by a team of around 55 procurement professionals
- Need to develop technical skills and support individuals in applying the knowledge to projects
- Requirement to implement a category management led approach
Approach
- Undertook a structured assessment of the team to identify learning and development needs
- Reviewed supporting management practices, coaching and mentoring frameworks
- Developed a modular competence based academy spanning 12 months and consisting of tutorial and project support
Benefits
- Provision of on-line category management tool enabling consistent ways of working and effective application of tools
- 12 projects completed delivering a Return on Investment of around 10:1
- Category management approach embedded within key parts of organisation